Professional Liability Insurance is essential for small-business owners who offer specialized services or products. So it makes sense that you'd want to cover your bases and apply for coverage.
But if this is your first time applying for small business insurance, you may not know what to expect. And even though the application process for Professional Liability Insurance is easy to navigate, it never hurts to be prepared. Read on — these tips will help you apply for insurance quotes when you're ready.
What Is Professional Liability Insurance?
Professional Liability Insurance (sometimes called Errors & Omissions or Malpractice Insurance) covers your legal costs if you're sued for allegedly negligent service, incomplete work, or professional oversights. If you'd like to know more about Professional Liability coverage before embarking on an application, these pages can help:
Information Needed to Complete Your Professional Liability Insurance Application
At insureon, we keep the application process for any small business insurance quote as streamlined as possible. To ensure your application goes quickly, be sure to have the following types of information on hand.
Applying for Professional Liability Insurance is much easier than filing your taxes — the only financials you need are some details about revenue and payroll. Specifically…
- Current fiscal-year revenue and projected revenue for the next.
- The amount of revenue generated by your largest client.
- Compensation figures for each of your owners and officers.
- Your total payroll.
General Business Information
Insurance companies need information about your company's composition in order to properly tailor a Professional Liability policy to your needs. Some of this information is basic (yet important). For instance…
- Contact information for each location of your business.
- Number and type of employees.
- The inception date of your business (under current ownership).
- The business structure of your company (LLC, partnership, corporation, etc.).
- A brief description of your industry sector and the work your company does.
Contracts define your obligations and can limit your liability. Your provider will need an idea about how you use contracts to assess the extent of your risk. For that reason, your insurance application may ask the following:
- How often do you use written contracts with your clients (as a percentage)?
- What do you use your client contracts for?
- Do you update, modify, or amend your client contracts, and how often?
- Do your contracts with subcontractors require them to carry Professional Liability Insurance?
Your Relationships to Other Companies
Owning or operating other companies can increase your liability exposures. Your application will seek to clarify your ownership with respect to other entities. Specifically…
- If your business owns 3 percent or more of a client company, you'll have to declare the revenue generated by each client.
- If your business owns a controlling interest in another company (i.e., 51 percent or more), you'll have to provide details on the insurance policies carried by those subsidiaries.
Your Company's Insurance and Claims History
Because prior and current coverage impacts your insurance needs, a Professional Liability Insurance application may ask…
- Has your company ever maintained Professional Liability Insurance before?
- For any insurance policy carried in the last 12 months, what were your liability limits and deductibles?
- Have claims been made under your previous or current insurance policies?
- Are you aware of any currently existing situations that might lead to a future claim?
Tips and Notes on the Application Process: What to Expect
Insureon's online Professional Liability Insurance application is pretty easy to understand, but there are some things that are helpful to keep in mind as you're filling it out:
- Shortly after you start your application, you'll receive an email with your password. If you can't finish your application in one sitting, simply sign in later, and you can pick up where you left off.
- Avoid using your browser's "back" button. Opt for the "Prev." arrow on the application instead.
- The application is adaptive, meaning certain answers will make other relevant questions appear. This allows you to skip over questions that don't apply to you.
- Have an idea about your desired deductible and policy limits — the application asks for these at the end.
After you've filled out the application, you'll receive insurance quotes from multiple insurers. Because quotes can vary significantly, read "A Guide to Professional Liability Insurance Quotes and Estimates for Small Businesses" to help you scrutinize the differences.
Start Your Professional Liability Insurance Application Today
To begin an application, you can either speak with an Insureon agent or fill out an online application yourself. Whichever method you choose, you'll be on your way to protecting the future of your business.